BW to supply second Egypt LNG FSRU

Maritime Group BW has been selected to deliver Egypt’s second floating storage regasification unit (FSRU) to state-run EGAS with operations due to begin in October, BW confirmed on Tuesday.

The news comes at a time of major domestic gas shortage with several large industrial users no longer able to continue production.

The newbuild 170,000 cubic metre (cbm) BW Singapore will be delivered to the Egyptian port of Ain Sukhna by the end of September and will deliver a maximum daily regasification capacity of 750 million cubic feet (mcf, 21 million cubic metres).

The vessel will join the 170,000cbm Hoegh Gallant, taken under a five-year charter by EGAS in April. Combined nameplate send out from the two vessels will reach 1.25 billion cubic feet/day.

“The project requires a fast-track schedule – five months from project inception to first gas – which represents a record short time for implementation,” said BW Group CEO Carsten Mortensen.

EGAS in July launched a tender for the supply of 45 cargoes to the second planned FSRU. The tender was scheduled to close on 2 August.

ICIS understands high temperatures in Egypt have recently led to gas being diverted from industrial users to cover the increased need for gas-fired power generation to cover cooling requirements.

All of the country’s four major urea exporters are understood to have been shut down as a result. ed.cox@icis.com